Tag: Social Security trust fund
Abstract Social Security’s Trust Fund is projected to run out in 2034. As policymakers consider restoring financial balance to the program, one topic that may be discussed is how to structure any tax increases. Understanding why Social Security requires a higher payroll tax than a funded retirement program for a given level of benefits is…
The brief’s key findings are: The 2017 Trustees Report shows very little change: Social Security’s 75-year deficit rose slightly from 2.66 percent to 2.83 percent of payroll. The deficit as a percentage of GDP remains at 0.9 percent. Trust fund exhaustion is still 2034, after which payroll taxes still cover about three quarters of promised…
